NZD/USD last trades at $0.6581, a touch........>

KIWI: NZD/USD last trades at $0.6581, a touch higher on the day.

- Wednesday's Asia-Pac session saw the rate crater to a fresh YTD low of $0.6527

in reaction to the latest RBNZ MonPol decision. The central bank delivered a

25bp cut to its OCR, noting that the rate move was "necessary to support the

outlook for employment and inflation" consistent with its policy objectives.

- NZD/USD gradually pared losses thereafter, nearing the opening levels into the

European morning. Strengthening USD applied some weight to the pair later in the

day, prompting it to close 29 pips lower, with NZD finishing as the second worst

G10 performer, amidst mixed signals re: Sino-U.S. trade war.

- In the NY/Asia crossover, RBNZ Gov Orr said that the outlook for rates is

"broadly balanced" & it's too early to tell if another cut will be needed.

- A downside breach of the 1.0% 10-DMA envelope at $0.6560 would draw bearish

attention to the aforementioned post-RBNZ low. Bulls need to recover $0.6600

before challenging the downtrend resistance, which comes in today at $0.6627.

- NZ focus turns to the 11th round of Sino-U.S. trade talks, due to kick off

today. Chinese inflation data, also due today, will likewise provide interest.